Travel Food Services Limited (TFS) has launched its Initial Public Offering (IPO) with a ₹2,000 crore Offer For Sale (OFS). The company is a leading player in the airport-based food and lounge services industry in India, making this IPO one of the most anticipated public issues in 2025. The public issue opens on July 7, 2025, and closes on July 9, 2025, with shares expected to be listed on BSE and NSE by July 14, 2025.

In this detailed article, we break down every aspect of the IPO—from price band and lot size to the company’s financials, objectives, subscription status, GMP (Grey Market Premium), and final recommendations.

Company Overview

Travel Food Services Limited has emerged as a pioneer in Travel Quick Service Restaurants (QSRs) and airport lounges in India. With an estimated 26% market share in Travel QSR and 45% market share in lounges (including JV/associate revenues) as of Fiscal 2025, the company has a dominant presence in Indian airports.

The brand operates a portfolio of licensed and in-house brands across airports, such as:

• Dosa Factory

• KFC

• Domino’s

• Café Coffee Day

• Good Times Bar
  and multiple lounges branded under TFS or third-party partners.

Its operations are primarily based at major Indian airports like Mumbai, Delhi, Bengaluru, Chennai, Kolkata, and Hyderabad.

IPO Structure

• IPO Type: Book Built Issue

• IPO Size: ₹2,000 Crores

• Fresh Issue: Nil

• Offer For Sale (OFS): 6.29 lakh shares (₹2,000 crore total)

• Face Value: ₹10 per equity share

• Price Band: ₹1,045 to ₹1,100

• Lot Size: 13 shares

• Retail Minimum Investment: ₹14,300 (1 lot)

• HNI Minimum Investment: ₹2,00,200 (14 lots or 182 shares)

• Market Capitalisation (at upper band): ₹14,484.74 Crores

Important Dates

Grey Market Premium (GMP) Update

As per market sources, Travel Food Services IPO GMP is ₹200 as of July 9, 2025.

• IPO Price: ₹1,100

• Expected Listing Price: ₹1,300

• Listing Gain (Estimated): 18.18%

Please note that GMP is unofficial and subject to rapid changes depending on demand and liquidity.

Lead Managers and Market Maker

The IPO is backed by some of the most reputed names in investment banking:

• Kotak Mahindra Capital Company Limited

• HSBC Securities and Capital Markets (India)

• ICICI Securities Limited

• Batlivala & Karani Securities India Private Limited

Promoter Background

TFS is promoted by:

• SSP Group plc (UK-based global operator in food and travel services)

• SSP Group Holdings Limited

• Kapur Family Trust, along with individual promoters Varun Kapur and Karan Kapur

SSP has a long-standing global reputation in travel retail, giving TFS strong operational and strategic backing.

Financial Highlights

The company has consistently grown in terms of revenue and profit over the past three financial years:

CAGR in PAT over 3 years: ~22.8%
Margins: EBITDA margins of ~38.4% in FY25—among the highest in the travel QSR segment

Key Ratios

The post-issue P/E of 39.89x is on the lower side compared to the industry benchmark, which may make the IPO fairly valued or even slightly undervalued in relative terms.

Objectives of the Issue

Since this is a pure OFS, the company will not receive any funds from the IPO. All proceeds will go to the promoter selling shareholders. Hence, no capital infusion is planned for future business expansion.

IPO Subscription Status

As of 11:30 AM on July 9, 2025, the IPO was subscribed 0.41 times. Given it is Day 3, a pickup in demand is expected by market close.

Anchor Investors

Anchor portion allocation details are yet to be officially released. However, early subscription numbers from QIBs and institutional players will be a key indicator of market confidence in the company.

Strengths of Travel Food Services

1. Market Leadership: Largest player in Indian airport F&B and lounge operations.

2. Strong Brand Portfolio: In-house and global brand tie-ups with high visibility.

3. Strategic Locations: Presence across top Indian airports ensures consistent footfall.

4. Stable Revenue Model: Long-term airport contracts and revenue-sharing model.

5. International Backing: Promoted by SSP Group plc, bringing global expertise.

Risks and Challenges

• Complete OFS: No fund infusion into the company; purely an exit strategy.

• Highly Regulated Sector: Dependent on airport authorities and government licensing.

• Footfall Dependent: Sensitive to events like pandemics or geopolitical issues.

• High Fixed Costs: Rental and staffing costs at airports remain high.

Analyst View: Should You Subscribe?

Given the strong financials, dominant market position, and a moderate valuation (P/E 39.89x vs sector 236x), the Travel Food Services IPO appears attractively priced.

However, the fact that it's a 100% Offer for Sale with no fresh capital might discourage long-term investors. This IPO is primarily beneficial to the promoters exiting partially or fully.

Additionally, subscription numbers were low as of early Day 3, so demand may be muted unless institutional participation picks up strongly in the final hours.

Final Verdict

✔️ Apply with Caution for Listing Gains

• Investors looking for listing gains can consider applying, based on GMP of ₹200 (18.18%)

• Long-term investors should watch the listing performance and post-IPO disclosures before committing large capital

  Disclaimer:

  This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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